Automation: Intelligrated aims at growth

Cole says new backing will fund the expansion of services and markets

The materials handling industry was in the news recently with an acquisition valued at more than $500 million. This time, I’m not talking about Amazon’s $775 million acquisition of Kiva Systems. Rather, it was the announcement on June 8 that Intelligrated has agreed to be acquired by a holding company owned by the Permira funds. With $435 million in revenue, Intelligrated was number 10 on Modern’s list of the Top 20 systems suppliers for 2011. The deal is expected to close in late July or early August.

While Kiva has seemingly gone quiet since the Amazon acquisition, leading many in the industry to wonder whether it will remain in the market, Intelligrated’s management remains firmly in control of the company’s operations, said Chris Cole, Intelligrated’s CEO. “I want to make very, very clear that the company management remains very heavily invested in Intelligrated and that will continue,” Cole told me the other day. “There is no change in the operations of the company.”

Instead, the deal represents a recapitalization that will give Intelligrated the financial strength and international experience to grow “as we want to grow,” Cole said.

In many ways, Intelligrated’s is a story of rapid and noteworthy growth. The company was launched on September 4, 2011, one week before the 9/11 attacks. Since then, it has grown into a serious international player. By Modern’s estimates, Intelligrated is likely the number 2 systems integrator in North America behind Dematic. Along with a significant presence in Central and South America, Cole said the company has had real success north of the border with companies like Canadian Tire and Forzani. “Frankly, we’ve been very popular with US multi-nationals expanding into Canada,” he said. He expects to approach or top $500 million in worldwide sales in 2012.

That growth led to the change of financial partners. Along with capital from Cole, co-founder Jim McCarthy and the Intelligrated management team, the start-up was funded by Gryphon Investors. Additional capital was added in 2006 by Tudor Investors. Nearly eleven years later, Gryphon remained an investor. That’s a lifetime in the investment world. What’s more, Intelligrated was the largest investment in Gryphon’s portfolio. To take the company to the next level meant bringing on investors with more financial strength. Enter Primera. “They’re a $26 billion family of funds,” Cole said. “They not only have the financial strength to help us grow, they have resources and a footprint outside of the US that can help us expand our geographic reach.”

What’s next for Intelligrated? Cole outlined several plans:

International expansion: With Europe slowing, Intelligrated plans to expand its existing presence in Latin America and look for opportunities in Asia.

Expansion of services: Expect to see more of an emphasis on concepting, analysis, design and after-market services. “Right now, we’re running the maintenance departments for some of our customers,” Cole said. “That’s something we couldn’t provide as a start-up company. Now that we have an installed base, we can flesh out those services.”

Expansion of hardware and software offerings: “I think we have a very strong product line, but there are segments and niches that we don’t fill,” Cole said. “We’ll continue to look for ways to broaden our appeal.” While Cole declined to specify the hardware and software technologies he’s interested in adding to Intelligrated’s portfolio, don’t be surprised if there are acquisitions in the future.

With ten years behind him, where does Cole want to see Intelligrated ten years from now? “What I want to see ten years from now is what I want to see now, which is to be a trusted partner for our customers,” he said. “We want to give them the best materials handling system to drive their bottom lines.”

Source: {source}

Article Topics
Amazon   Automation   Intelligrated   Kiva Systems   Permira   All topics


Comments
You must be logged in to post a comment. Login.

About the Author
Bob Trebilcock
Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.
 
Latest News
Global Online Logistics Community: If You Build It They Will Come, Sometimes
A global online logistics community should be a vibrant entity where transparency of information, pricing, and service levels empower enterprises, carriers, and suppliers to take full advantage of revenue…

Realizing a New Vision for TMS Design
A couple of years ago, we set out on a new project to redesign our user interface with the goal of setting a new standard by which all TMS user interfaces would be measured against.

Landstar System Joins Blockchain in Transport Alliance
Landstar System, Inc., a worldwide, asset-light provider of integrated transportation management solutions delivering safe, specialized transportation services, today announced it has joined the Blockchain…

XPO Logistics Expects 750,000 European “Last Mile” Home Deliveries in 2018
XPO Logistics has used rapid-fire acquisitions to grow from a $175 million truck brokerage company in 2012 to a $15.38 billion freight and logistics behemoth, but its European expansion, for now, is being…


 

24|7 Pro Team

The 24|7 Team is your direct pipeline to solutions for your business challenges. It's your opportunity to have supply chain and logistics experts look at your specific challenges and needs, and give you free, no-obligation advice, solutions, and information.

The 24|7 Team will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

1
  Choose a topic for your RFP

Transportation RFP/RFI

The Transportation RFP is your direct pipeline to solutions for your transportation challenges. It's your opportunity to have logistics experts look at your specific transportation challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect software or system can be an indomitable challenge. Using this transportation/TMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your Request for Proposal list.

Warehouse/DC Management RFP/RFI

The Warehouse Management Systems (WMS) RFP is your direct pipeline to solutions for your WMS challenges. It's your opportunity to have logistics experts look at your specific WMS challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request.

Choosing the perfect WMS solution can be an indomitable challenge. Using this WMS RFP will simplify the task of creating a database of likely partners, building your knowledge base, and preparing your WMS Request for Proposal list.

Supply Chain RFP/RFI

The Supply Chain RFP is your opportunity to have logistics experts look at your specific challenges and needs, and receive free, no-obligation advice, solutions, and information. It simplifies finding a pool of likely partners, building your knowledge base, and preparing your Request for Proposal list. The companies in the Logistics Planner have agreed to respond to your request for in-depth information and follow-up, and your request is totally confidential.

Software/Technology RFP/RFI

The Software/Technology is your direct pipeline to solutions for your logistics information technology challenges. It's your opportunity to have logistics experts look at your specific technology challenges and needs, and give you free, no-obligation advice, solutions, and information specific to your request. Whether it's WMS, TMS, Mobile or Cloud, our pros can help.

The companies listed below have agreed to respond to your request for in-depth information and follow-up. Your request is totally confidential.

Executive Education RFI

The Logistics and Supply Chain Education RFI can help you identify the schools, coursework, continuing education, distance learning and certification opportunities available from leading logistics educational institutions.

Upgrade and improve your logistics and supply chain skillsets. Whatever route you choose—advanced degree, executive education, certification or distance learning—the time and money you invest in your education today can pay off in continued career success tomorrow. Contact leading universities and professional institutions for the information you need to prepare for the future.

Third Party Logistics RFP/RFI

This 3PL Request for Proposal (RFP)/Request for Information (RFI) can help you find the 3PL and 4PL providers that can meet your specific 3PL service challenges and needs. The 3PL companies below will provide free, no-obligation third-party logistics advice, solutions, and information.

Ask your 3PL questions, you'll get answers. Simply complete the information, and detail your 3PL challenges. Then, check off the third-party logistics companies that you want to review your request.

1. Choose an RFI topic.
2. Enter your contact information and challenge.
3. Select companies and optional categories.
4. Submit.


2

Your Information



Your Challenge, Problem or Request *

3

Select Transportation Companies

  • Select All

  • 3Gtms
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Kuebix
  • Landstar
  • Legacy Supply Chain Svs.
  • One Network
  • Pitt Ohio
  • Purolator
  • Quintiq
  • SEKO Logistics
  • SMC3


Select Relevent Categories

  • Air Freight
  • Intermodal
  • Motor Freight
  • Ocean Freight
  • Rail Freight
  • TMS

Select Warehouse/DC Management Companies

  • Select All

  • 3PL Central
  • Apex Supply Chain Tech.
  • Honeywell Intelligrated
  • Kuebix
  • Legacy Supply Chain Svs.
  • Swisslog
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Auto ID & Data Capture
  • Automation
  • Conveyors & Sortation
  • Lift Trucks
  • Packaging & Labeling
  • Pallets & Containers
  • Shelving & Racking
  • WMS

Select Supply Chain Companies

  • Select All

  • 3Gtms
  • 3PL Central
  • Amber Road
  • Apex Supply Chain Tech.
  • APICS
  • BluJay Solutions
  • CSX Trans. Intermodal
  • Frontier Business
  • Kuebix
  • Legacy Supply Chain Svs.
  • Logility
  • One Network
  • Purolator
  • Quintiq
  • SMC3
  • Synchrono
  • TAKE Supply Chain
  • Westfalia Technologies
  • Zebra Technologies


Select Relevent Categories

  • Global Trade
  • Inventory Management
  • Risk Management
  • Sustainability

Select Software/Technology Companies

  • Select All

  • 3GTMS
  • 3PL Central
  • Apex Supply Chain Tech.
  • BluJay Solutions
  • Honeywell Intelligrated
  • Frontier Business
  • Kuebix
  • Logility
  • One Network
  • Quintiq
  • SMC3
  • Swisslog Logistics
  • Synchrono
  • TAKE Supply Chain
  • Zebra Technologies


Select Relevent Categories

  • ERP
  • Sales & Operations
  • Sourcing/Procurement
  • Optimization
  • Transportation Mgmt
  • Warehouse Mgmt

Select Executive Education Choices

  • Select All

  • Graduate Courses
  • Online/Distance
  • Executive Education
  • Certifications
  • Undergraduate
  • Seminars
  • Associations
  • Conferences
  • Tradeshows


Select Third Party Logistics Companies

  • Select All

  • 3PL Central
  • Landstar
  • Legacy Supply Chain Svs.
  • Purolator
  • SEKO Logistics
  • Westfalia Technologies


4
 

24|7 Company Profiles